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Kindle Notes & Highlights
by
Salim Ismail
Read between
May 9 - May 13, 2021
Anchoring bias: Tendency to rely too heavily, or “anchor,” on one trait or piece of information when making decisions. Availability bias: Tendency to overestimate the likelihood of events with greater “availability” in memory, which can be influenced by how recent the memories are or how unusual or emotionally charged they may be. Confirmation bias: Tendency to search for, interpret, focus on and remember information in a way that confirms one’s preconceptions. Framing bias: Drawing different conclusions from the same information, depending on how or by whom that information is presented.
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Key attributes of Engagement include: Ranking transparency Self-efficacy (sense of control, agency and impact) Peer pressure (social comparison) Eliciting positive rather than negative emotions to drive long-term behavioral change Instant feedback (short feedback cycles) Clear, authentic rules, goals and rewards (only reward outputs, not inputs) Virtual currencies or points
Bill Gates takes Hsieh’s insight a step further: “Success is a lousy teacher. It seduces smart people into thinking they can’t lose.”
Not only does failure free people, ideas and capital for future learning and breakthroughs, it’s also worth noting that, though rarely recognized, a corporate culture that accepts failure benefits from diminished internal politics and much less in the way of pointing fingers and “blame games” thanks to trust, transparency and openness.
The law, F = MA, states that force causes acceleration in inverse proportion to mass. A small mass allows dramatic acceleration and quick changes in direction—precisely what we’re seeing with many ExOs today. With very little internal inertia (that is, number of employees, assets or organizational structures), they demonstrate extraordinary flexibility, which is a critical quality in today’s volatile world.
in every industry, and at every level, software is automating and accelerating the world.
Vision: What you’re doing Purpose: Why you do it Business model: What will fuel you as you’re doing it Wow and uniqueness factors: What sets you apart from others Values: What matters to you
When assessing a startup for funding, investors typically categorize three major risk areas: Technology risk: Will it work? Market risk: Will people buy the product? Execution risk: Is the team able to function and pivot as needed?
identifying two distinct sets of skills: Discovery skills: The ability to generate ideas—to associate, question, observe, network and experiment. Delivery skills: The ability to execute ideas—to analyze, plan, implement, follow through and be detail-oriented.
Marc Andreessen, “Most entrepreneurs prefer failing conventionally rather than succeeding unconventionally.”
In the end, only raw, unbridled passion can solve an important problem and overcome the endless hurdles that present themselves.
As investor Fred Wilson says, “Startups should be hunch-driven early on, and data-driven as they scale.”
Peter Diamandis is fond of saying, “The day before a major breakthrough, it is just a crazy idea.”
Kelly identified the following eight ways to build a business model when the underlying information is free: Immediacy: Immediacy is the reason people order in advance on Amazon or attend the theater on opening night. Being the first to know about or experience something has intrinsic cultural, social and even commercial value. In short: time confers privilege. Personalization: Having a product or service customized just for you not only gives added value in terms of quality of experience and ease-of-use or functionality, it also creates “stickiness,” as both parties are invested in the
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to qualify potential customers and convert them into users and paying customers. A good starting point for this is Dave McClure’s AARRR, an onomatopoeically titled “Pirate” model for startup metrics. The model tracks the following layers and key metrics: Acquisition: How do users locate you? (Growth metric) Activation: Do users have a great first experience? (Value metric) Retention: Do users come back? (Value metric) Revenue: How do you make money? (Value metric) Referral: Do users tell others? (Growth metric) The AARRR model is not easy to forget once you use it
Chip Conley, “Culture is what happens when the boss leaves.”
As Steve Jobs said, “We run Apple like a startup. We always let ideas win arguments, not hierarchies. Otherwise, your best employees won’t stay. Collaboration, discipline and trust are critical.”
the more information-based we become, the greater the need to rely on rituals and meaning to stabilize companies and keep teams motivated.
As Bezos says, “If you’re competitor-focused, you have to wait until there is a competitor doing something. Being customer-focused allows you to be more pioneering.”
